Fidelity cash position

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logat2
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Fidelity cash position

Post by logat2 » Wed Jul 04, 2018 2:26 pm

folks - I keep a certain amount of cash for equity trades when I find good opportunities in the market. The cash makes very little interest because Fidelity only offers SPAXX or FZFXX as your cash position. Any other liquid asset that will get me better yield of about 0.5% but be fairly liquid and low risk

thx

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welderwannabe
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Re: Fidelity cash position

Post by welderwannabe » Wed Jul 04, 2018 2:27 pm

logat2 wrote:
Wed Jul 04, 2018 2:26 pm
folks - I keep a certain amount of cash for equity trades when I find good opportunities in the market. The cash makes very little interest because Fidelity only offers SPAXX or FZFXX as your cash position. Any other liquid asset that will get me better yield of about 0.5% but be fairly liquid and low risk

thx
You can transfer the money to SPRXX, but it has a minimum buyin of $2,500 I believe. It is 1.86% at the moment.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

livesoft
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Re: Fidelity cash position

Post by livesoft » Wed Jul 04, 2018 2:33 pm

How about using some of the no-commission ETFs?

I do that at TDAmeritrade and just call them "bond funds." Examples for me are BIL and FLRN. They are probably different free ones at Fidelity. The way to get around the 30-day early redemption is to have some of both. Start one, then the other about 15 days later. Then you have at least 2-week liquidity, but you always have liquidity if you want to pay the early fee that is avoided by holding assets longer.

The 30-day SEC yield of FLRN is about 2.5%.
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stlutz
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Re: Fidelity cash position

Post by stlutz » Wed Jul 04, 2018 2:39 pm

SPAXX currently yields about 1.5%.

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logat2
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Re: Fidelity cash position

Post by logat2 » Wed Jul 04, 2018 3:59 pm

welderwannabe wrote:
Wed Jul 04, 2018 2:27 pm
logat2 wrote:
Wed Jul 04, 2018 2:26 pm
folks - I keep a certain amount of cash for equity trades when I find good opportunities in the market. The cash makes very little interest because Fidelity only offers SPAXX or FZFXX as your cash position. Any other liquid asset that will get me better yield of about 0.5% but be fairly liquid and low risk

thx
You can transfer the money to SPRXX, but it has a minimum buyin of $2,500 I believe. It is 1.86% at the moment.
SPRXX looks good; does it have 30-day minimum retention and if I sell during market hours, do I have access to the cash to trade the next second?

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Re: Fidelity cash position

Post by abuss368 » Wed Jul 04, 2018 4:01 pm

While I am not familiar with Fidelity's investment offerings, Vanguard's Prime Money Market Fund is yielding 2.04% presently.
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Re: Fidelity cash position

Post by stlutz » Wed Jul 04, 2018 4:16 pm

...does it have 30-day minimum retention and if I sell during market hours, do I have access to the cash to trade the next second?
I think the answer is "no" to the first question. I think the answer to the second question could be "yes" since money market funds settle the same day while other trades settle later (T+1 or T+2 for most securities).

But there is a more authoritative source you can ask that is open 24/7/365 (i.e. Fidelity). If it was me I'd ask them and report back to the forum what the answer is.

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logat2
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Re: Fidelity cash position

Post by logat2 » Wed Jul 04, 2018 7:13 pm

I'll call fidelity and find out. Also money market funds are relatively risk-free and just a tad bit more riskier than a FDIC-insured CD right given MMA's invest much of their money in treasury, etc

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Re: Fidelity cash position

Post by Kevin M » Wed Jul 04, 2018 7:42 pm

I never keep anything in the settlement fund, but just sell shares of a higher yielding MM fund, and transfer proceeds to the settlement fund after a trade is executed.

You probably don't even have to do that, as Fidelity will automatically pull from other MM funds if there isn't enough in the settlement fund. Another forum member pointed this out, and while I haven't tested it on a large scale, I was $0.01 short in my settlement fund once, and that was pulled from another MM fund without any alerts or warnings about trade violations.

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Re: Fidelity cash position

Post by HJG0989 » Wed Jul 04, 2018 8:21 pm

logat2 wrote:
Wed Jul 04, 2018 7:13 pm
I'll call fidelity and find out. Also money market funds are relatively risk-free and just a tad bit more riskier than a FDIC-insured CD right given MMA's invest much of their money in treasury, etc
Will you let us know what you find out? TIA!

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Re: Fidelity cash position

Post by 123 » Wed Jul 04, 2018 9:22 pm

At Fidelity we're holidng a position in FZDXX Fidelity MMKT Premium Class. While it has a high minimum purchase ($100,000.00) it has a current 7-day yield as of 7/3/18 of 1.98%. You purchase it like any other Fidelity mutual fund, no fee. There are other "purchased" money market alternatives as well. "Purchased" money market funds are kind of an annoyance but can be useful options at times.
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Re: Fidelity cash position

Post by Kevin M » Wed Jul 04, 2018 9:55 pm

123 wrote:
Wed Jul 04, 2018 9:22 pm
At Fidelity we're holidng a position in FZDXX Fidelity MMKT Premium Class. While it has a high minimum purchase ($100,000.00) it has a current 7-day yield as of 7/3/18 of 1.98%.
And, although the minimum initial purchase is $100K, you only need to keep $10K in the fund to keep it open. Furthermore, if you happen to have Private Client status, you may be able to continue to hold the fund with even less than $10K in it. I was told by a Fidelity rep that as a Private Client, the fund minimums to keep a fund open do not apply, and have found that to be the case for SPRXX. I will find out soon for FZDXX, because with a trade I did yesterday, the amount I have in FZDXX dropped below $10K.

Kevin
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stlutz
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Re: Fidelity cash position

Post by stlutz » Wed Jul 04, 2018 10:34 pm

You probably don't even have to do that, as Fidelity will automatically pull from other MM funds if there isn't enough in the settlement fund. Another forum member pointed this out, and while I haven't tested it on a large scale, I was $0.01 short in my settlement fund once, and that was pulled from another MM fund without any alerts or warnings about trade violations.
Are the other money market funds included in your "cash available to trade" amount? I also wonder if a cash account and a margin account are treated different or not.

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Re: Fidelity cash position

Post by Chip » Thu Jul 05, 2018 4:20 am

stlutz wrote:
Wed Jul 04, 2018 10:34 pm
Are the other money market funds included in your "cash available to trade" amount? I also wonder if a cash account and a margin account are treated different or not.
Yes, they are. Even better, they are considered "cash available to withdraw". At least that's my experience with FZDXX in both a taxable margin account and in an IRA.

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Re: Fidelity cash position

Post by MikeG62 » Thu Jul 05, 2018 8:03 am

Kevin M wrote:
Wed Jul 04, 2018 7:42 pm

You probably don't even have to do that, as Fidelity will automatically pull from other MM funds if there isn't enough in the settlement fund. Another forum member pointed this out, and while I haven't tested it on a large scale, I was $0.01 short in my settlement fund once, and that was pulled from another MM fund without any alerts or warnings about trade violations.

Kevin
I have done this with larger amounts and can confirm that is works (funds will pull from MM fund) - no need to hold low yielding cash at Fido.
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Re: Fidelity cash position

Post by linenfort » Thu Jul 05, 2018 10:17 am

welderwannabe wrote:
Wed Jul 04, 2018 2:27 pm
You can transfer the money to SPRXX, but it has a minimum buyin of $2,500 I believe. It is 1.86% at the moment.
I guess it's already built into the yield figure they provide, but wow, that is some expense ratio. 0.42%

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Re: Fidelity cash position

Post by EyeYield » Thu Jul 05, 2018 10:21 pm

Kevin M wrote:
Wed Jul 04, 2018 9:55 pm
And, although the minimum initial purchase is $100K, you only need to keep $10K in the fund to keep it open. Furthermore, if you happen to have Private Client status, you may be able to continue to hold the fund with even less than $10K in it. I was told by a Fidelity rep that as a Private Client, the fund minimums to keep a fund open do not apply, and have found that to be the case for SPRXX. I will find out soon for FZDXX, because with a trade I did yesterday, the amount I have in FZDXX dropped below $10K.

Kevin
Thanks for the info. I was unable to get anyone at Fidelity to confirm that when I asked last year - Private Client here.

Could you report back if Fidelity reacts to you being beneath $10k in FZDXX?

I’m currently over the minimum after the yield beat the 3 month rung of my CD Ladder that matured in March, but it would be nice to know that I can use that cash at will without consequences.
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Re: Fidelity cash position

Post by rgs92 » Thu Jul 05, 2018 11:20 pm

Is there any sort of short term trading fee or frequent-trading restriction on Fidelity's SPRXX money market fund?
I don't see in mentioned on the fact sheet for it, but there is an odd footnote about the possibility of short term trading issues.
It says in footnote 3 under the Fees + Distributions tab:

However, the fund may charge a short-term trading or redemption fee to protect the interests of long-term shareholders of the fund.

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Re: Fidelity cash position

Post by welderwannabe » Fri Jul 06, 2018 12:08 pm

linenfort wrote:
Thu Jul 05, 2018 10:17 am
I guess it's already built into the yield figure they provide, but wow, that is some expense ratio. 0.42%
Yup. We are spoiled by Vanguard's MM funds...
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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Re: Fidelity cash position

Post by welderwannabe » Fri Jul 06, 2018 12:10 pm

rgs92 wrote:
Thu Jul 05, 2018 11:20 pm
Is there any sort of short term trading fee or frequent-trading restriction on Fidelity's SPRXX money market fund?
I don't see in mentioned on the fact sheet for it, but there is an odd footnote about the possibility of short term trading issues.
It says in footnote 3 under the Fees + Distributions tab:

However, the fund may charge a short-term trading or redemption fee to protect the interests of long-term shareholders of the fund.
No. That is standard language due to the money market reform. Basically if we have another financial crisis they are permitted to charge redemption fees, or even stop redemption for a short period of time. This is to stop a run on money market funds like we experienced in 2008. Any retail MM with a fixed NAV that doesn't invest exclusively in US govt paper will have this notice or something similar.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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Re: Fidelity cash position

Post by Kevin M » Fri Jul 06, 2018 2:30 pm

EyeYield wrote:
Thu Jul 05, 2018 10:21 pm
Kevin M wrote:
Wed Jul 04, 2018 9:55 pm
And, although the minimum initial purchase is $100K, you only need to keep $10K in the fund to keep it open. Furthermore, if you happen to have Private Client status, you may be able to continue to hold the fund with even less than $10K in it. I was told by a Fidelity rep that as a Private Client, the fund minimums to keep a fund open do not apply, and have found that to be the case for SPRXX. I will find out soon for FZDXX, because with a trade I did yesterday, the amount I have in FZDXX dropped below $10K.

Kevin
Thanks for the info. I was unable to get anyone at Fidelity to confirm that when I asked last year - Private Client here.
Interesting. I called when I got the warning when my SPRXX dropped below $2,500, and the rep told me, without hesitation, that these minimums don't apply to me.
Could you report back if Fidelity reacts to you being beneath $10k in FZDXX?
Current balance is a little over $8K, and nothing has happened yet.

Kevin
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Socal77
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Re: Fidelity cash position

Post by Socal77 » Fri Jul 06, 2018 2:46 pm

I just started using iShares SHV (Ultra short term treasury ETF) in my taxable and 401K brokerage accounts.

Its average maturity is ~.45 years, has an SEC yield currently of 1.89%, and expense ratio of .15%.

It's a no transaction fee fund through Fidelity.

mattsm
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Re: Fidelity cash position

Post by mattsm » Fri Jul 06, 2018 2:50 pm

Does Fidelity automatically liquidate this to cover expenses?

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Re: Fidelity cash position

Post by abner kravitz » Fri Jul 06, 2018 3:09 pm

mattsm wrote:
Fri Jul 06, 2018 2:50 pm
Does Fidelity automatically liquidate this to cover expenses?
I believe they will only automatically liquidate money market funds. That is what the Fidelity rep told me today.

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Re: Fidelity cash position

Post by welderwannabe » Fri Jul 06, 2018 3:36 pm

Socal77 wrote:
Fri Jul 06, 2018 2:46 pm
I just started using iShares SHV (Ultra short term treasury ETF) in my taxable and 401K brokerage accounts.

Its average maturity is ~.45 years, has an SEC yield currently of 1.89%, and expense ratio of .15%.

It's a no transaction fee fund through Fidelity.
You gotta watch this at Fidelity. While they have commission free iShares ETFs, you have to hold them. You can't move in and out of them. I believe it is a 30 day minimum or they end up clawing back the commission they waved. This makes it a somewhat poor substitute for a money market if you want to use it like cash.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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Re: Fidelity cash position

Post by welderwannabe » Fri Jul 06, 2018 3:37 pm

mattsm wrote:
Fri Jul 06, 2018 2:50 pm
Does Fidelity automatically liquidate this to cover expenses?
All your Fidelity money markets are treated like cash and show up as money available to trade. They will pull from the core first, and then start to sell money market funds to handle your trade.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

lm
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Re: Fidelity cash position

Post by lm » Fri Jul 06, 2018 3:43 pm

Fidelity offer a large number of money market funds:

https://www.fidelity.com/mutual-funds/f ... electTab=6

Depending on which state you live in and on your tax bracket a municipal fund might be worth considering. For example, Massachusetts AMT Tax-Free Money Market Fund FMSXX lists a tax-equivalent yield of 2.13% (but also has a 25k minimum).

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TheClash
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Re: Fidelity cash position

Post by TheClash » Fri Jul 06, 2018 4:06 pm

I see SPAXX and FZFXX have 7-day yields of 1.50%+

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Re: Fidelity cash position

Post by SeekingAPlan » Fri Jul 06, 2018 4:51 pm

Kevin M wrote:
Fri Jul 06, 2018 2:30 pm
EyeYield wrote:
Thu Jul 05, 2018 10:21 pm
Kevin M wrote:
Wed Jul 04, 2018 9:55 pm
And, although the minimum initial purchase is $100K, you only need to keep $10K in the fund to keep it open. Furthermore, if you happen to have Private Client status, you may be able to continue to hold the fund with even less than $10K in it. I was told by a Fidelity rep that as a Private Client, the fund minimums to keep a fund open do not apply, and have found that to be the case for SPRXX. I will find out soon for FZDXX, because with a trade I did yesterday, the amount I have in FZDXX dropped below $10K.

Kevin
Thanks for the info. I was unable to get anyone at Fidelity to confirm that when I asked last year - Private Client here.
Interesting. I called when I got the warning when my SPRXX dropped below $2,500, and the rep told me, without hesitation, that these minimums don't apply to me.
Could you report back if Fidelity reacts to you being beneath $10k in FZDXX?
Current balance is a little over $8K, and nothing has happened yet.

Kevin
Curious about this warning. When my balance has fallen below $2000 I have never gotten a warning. I was concerned if I would suddenly be penalized with no warning but so far nothing has ever happened.

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Re: Fidelity cash position

Post by Socal77 » Fri Jul 06, 2018 5:53 pm

welderwannabe wrote:
Fri Jul 06, 2018 3:36 pm
Socal77 wrote:
Fri Jul 06, 2018 2:46 pm
I just started using iShares SHV (Ultra short term treasury ETF) in my taxable and 401K brokerage accounts.

Its average maturity is ~.45 years, has an SEC yield currently of 1.89%, and expense ratio of .15%.

It's a no transaction fee fund through Fidelity.
You gotta watch this at Fidelity. While they have commission free iShares ETFs, you have to hold them. You can't move in and out of them. I believe it is a 30 day minimum or they end up clawing back the commission they waved. This makes it a somewhat poor substitute for a money market if you want to use it like cash.
Thanks for the heads up welderwannabe... In the rare instances I want to get out of them, I will have had them for greater than 30 days.

I'm mostly buying and holding iShares ETF's for the long run.. ITOT, IXUS, AGG.

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Re: Fidelity cash position

Post by rgs92 » Fri Jul 06, 2018 6:28 pm

Thank you Welderwannabe. I never would have known that was the origin of that. Fascinating.

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Re: Fidelity cash position

Post by EyeYield » Fri Jul 06, 2018 6:50 pm

Kevin M wrote:
Fri Jul 06, 2018 2:30 pm
EyeYield wrote:
Thu Jul 05, 2018 10:21 pm
Kevin M wrote:
Wed Jul 04, 2018 9:55 pm
And, although the minimum initial purchase is $100K, you only need to keep $10K in the fund to keep it open. Furthermore, if you happen to have Private Client status, you may be able to continue to hold the fund with even less than $10K in it. I was told by a Fidelity rep that as a Private Client, the fund minimums to keep a fund open do not apply, and have found that to be the case for SPRXX. I will find out soon for FZDXX, because with a trade I did yesterday, the amount I have in FZDXX dropped below $10K.

Kevin
Thanks for the info. I was unable to get anyone at Fidelity to confirm that when I asked last year - Private Client here.
Interesting. I called when I got the warning when my SPRXX dropped below $2,500, and the rep told me, without hesitation, that these minimums don't apply to me.
Could you report back if Fidelity reacts to you being beneath $10k in FZDXX?
Current balance is a little over $8K, and nothing has happened yet.

Kevin
Thanks,
Last year, maybe it was the year before, I think I called a generic Fidelity number and also spoke with my assigned broker’s assistant and could not get a definitive answer.

I just called the Private Client Group number and got the same non hesitant response you did.
In fact I was told there is no minimum balance for FZDXX, that $100k is only the initial purchase minimum.
I asked if I could let the balance go to one dollar and was told yes.

Glad to finally clear that up.
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Re: Fidelity cash position

Post by Theoretical » Fri Jul 06, 2018 6:55 pm

I use FCONX, the Conservative Income Fund for cash. While its ER is .35%, that’s lower than the money market of .42%, and I like how the fund is structured - credit risk on the extremely short term and term risk taken with higher rates securities. It’s primarily corporates and has about a 2 month duration. More importantly, it has no frequent transaction fees or penalties (explicitly in the prospectus).

I funnel all of my dividends and CD interest into it until I have a better place for them (I try to avoid lots of little stock purchases in taxable). You need 2500 to get it opened and there’s no low balance fee as long as it’s above 2000.

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logat2
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Re: Fidelity cash position

Post by logat2 » Fri Jul 06, 2018 7:10 pm

How does FZEXX compare to FZDXX - seems like FZEXX may be the better option?

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Re: Fidelity cash position

Post by welderwannabe » Sat Jul 07, 2018 11:45 am

logat2 wrote:
Fri Jul 06, 2018 7:10 pm
How does FZEXX compare to FZDXX - seems like FZEXX may be the better option?
That answer all depends on what your tax rate is.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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logat2
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Re: Fidelity cash position

Post by logat2 » Sun Jul 08, 2018 2:11 pm

tax rate of 28% and wondering if FZEXX is AMT exempt too

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Re: Fidelity cash position

Post by Theoretical » Sun Jul 08, 2018 2:50 pm

I don’t know, what does the prospectus say?

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Re: Fidelity cash position

Post by welderwannabe » Sun Jul 08, 2018 3:54 pm

logat2 wrote:
Sun Jul 08, 2018 2:11 pm
tax rate of 28% and wondering if FZEXX is AMT exempt too
Yes, the fund strives to avoid the AMT. Most funds that have 'tax exempt' in the title do. Ones that say 'municipal' instead you have to pay more attention. Not a hard and fast rule, more of a rule of thumb :)

There is no longer a 28% tax rate unless you are including state tax...and if you are, it is really immaterial for a decision on whether to invest in a national tax exempt money market or not. You are probably in the 24% bracket now. Could have another 3.8% for the NIIT depending on income.

Municipal money markets are a tough sell in the 24% tax bracket. You would likely be better off in a regular money market.
Last edited by welderwannabe on Sun Jul 08, 2018 4:44 pm, edited 1 time in total.
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Re: Fidelity cash position

Post by Alchemist » Sun Jul 08, 2018 4:25 pm

logat2 wrote:
Wed Jul 04, 2018 2:26 pm
folks - I keep a certain amount of cash for equity trades when I find good opportunities in the market. The cash makes very little interest because Fidelity only offers SPAXX or FZFXX as your cash position. Any other liquid asset that will get me better yield of about 0.5% but be fairly liquid and low risk

thx
As others have already noted, both SPAXX and FZFXX are yielding greater than 1.5% right now.....so putting your cash in something that is yielding 0.5% would be cutting your yield by two thirds.

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logat2
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Re: Fidelity cash position

Post by logat2 » Mon Jul 09, 2018 4:26 pm

Sorry I'm in the 35% tax bracket and comparing FZEXX to FZDXX

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Re: Fidelity cash position

Post by aj76er » Mon Jul 09, 2018 4:46 pm

Theoretical wrote:
Fri Jul 06, 2018 6:55 pm
I use FCONX, the Conservative Income Fund for cash.
Will Fidelity auto-pull from this fund, or is it just MM funds?
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Theoretical
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Re: Fidelity cash position

Post by Theoretical » Mon Jul 09, 2018 4:56 pm

No it will not, so you do have to buy or sell.

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Re: Fidelity cash position

Post by protagonist » Mon Jul 09, 2018 8:04 pm

If you can initially invest $100K , look at FZDXX Premium Money Market , currently getting close to 2% yield. https://fundresearch.fidelity.com/mutua ... /31617H805

You just have to make a $100K initial investment, which is steep. But if you can, after that you can invest most of it in other vehicles, as long as you maintain $10K in the fund. You would probably want to keep at least that for an emergency fund anyway. And you can treat it like a regular checking/savings account with free ATM use.

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Re: Fidelity cash position

Post by B.C. Krygowski » Sat Jul 21, 2018 9:59 am

Most excellent and useful thread!

I looked into FZDXX and although the fund research page clearly states a 100K minimum investment, when I actually attempted to exchange into the fund the minimum listed on the trade execution page was 10K (not 100K).

Being curious, I chose a number above 10K but below 100K and the trade has gone through without any hiccups. :D

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Re: Fidelity cash position

Post by Spirit Rider » Sat Jul 21, 2018 10:54 am

Kevin M wrote:
Wed Jul 04, 2018 9:55 pm
123 wrote:
Wed Jul 04, 2018 9:22 pm
At Fidelity we're holidng a position in FZDXX Fidelity MMKT Premium Class. While it has a high minimum purchase ($100,000.00) it has a current 7-day yield as of 7/3/18 of 1.98%.
And, although the minimum initial purchase is $100K, you only need to keep $10K in the fund to keep it open. Furthermore, if you happen to have Private Client status, you may be able to continue to hold the fund with even less than $10K in it. I was told by a Fidelity rep that as a Private Client, the fund minimums to keep a fund open do not apply, and have found that to be the case for SPRXX. I will find out soon for FZDXX, because with a trade I did yesterday, the amount I have in FZDXX dropped below $10K.
When SEC regulations on MMFs changed, Fidelity transferred me from FDRXX (Fidelity Government Cash Reserves) to FZDXX. I only had the $2K FDRXX minimum in it. I do not have private client status, but I have just continued to use $2K as my minimum for several years with no problems.

Note; The $100K minimum initial investment is reduced to $10K for IRAs and $500 for an SEP IRA or SE 401k .

jjface
Posts: 2606
Joined: Thu Mar 19, 2015 6:18 pm

Re: Fidelity cash position

Post by jjface » Sat Jul 21, 2018 3:50 pm

Spirit Rider wrote:
Sat Jul 21, 2018 10:54 am
Kevin M wrote:
Wed Jul 04, 2018 9:55 pm
123 wrote:
Wed Jul 04, 2018 9:22 pm
At Fidelity we're holidng a position in FZDXX Fidelity MMKT Premium Class. While it has a high minimum purchase ($100,000.00) it has a current 7-day yield as of 7/3/18 of 1.98%.
And, although the minimum initial purchase is $100K, you only need to keep $10K in the fund to keep it open. Furthermore, if you happen to have Private Client status, you may be able to continue to hold the fund with even less than $10K in it. I was told by a Fidelity rep that as a Private Client, the fund minimums to keep a fund open do not apply, and have found that to be the case for SPRXX. I will find out soon for FZDXX, because with a trade I did yesterday, the amount I have in FZDXX dropped below $10K.
When SEC regulations on MMFs changed, Fidelity transferred me from FDRXX (Fidelity Government Cash Reserves) to FZDXX. I only had the $2K FDRXX minimum in it. I do not have private client status, but I have just continued to use $2K as my minimum for several years with no problems.

Note; The $100K minimum initial investment is reduced to $10K for IRAs and $500 for an SEP IRA or SE 401k .
It is 10k in my se401k.

Spirit Rider
Posts: 11769
Joined: Fri Mar 02, 2007 2:39 pm

Re: Fidelity cash position

Post by Spirit Rider » Sat Jul 21, 2018 3:58 pm

jjface wrote:
Sat Jul 21, 2018 3:50 pm
It is 10k in my se401k.
You did not click on the note4 "Initial Group Retirement Investment4" listing $10K.

"4. Initial minimum investments into group retirement accounts such as Fidelity Simplified Employee Pension-IRA, Keogh, Self-Employed 401(k), and Non-Fidelity Prototype Retirement accounts are $500 or higher. There is no minimum for additional investments in any type of Fidelity fund you already own."

jjface
Posts: 2606
Joined: Thu Mar 19, 2015 6:18 pm

Re: Fidelity cash position

Post by jjface » Sat Jul 21, 2018 6:55 pm

Spirit Rider wrote:
Sat Jul 21, 2018 3:58 pm
jjface wrote:
Sat Jul 21, 2018 3:50 pm
It is 10k in my se401k.
You did not click on the note4 "Initial Group Retirement Investment4" listing $10K.

"4. Initial minimum investments into group retirement accounts such as Fidelity Simplified Employee Pension-IRA, Keogh, Self-Employed 401(k), and Non-Fidelity Prototype Retirement accounts are $500 or higher. There is no minimum for additional investments in any type of Fidelity fund you already own."
No I actually tried to buy less than $10k and the system would not let me and said I needed a min of $10k. Somewhere there is an error.

Spirit Rider
Posts: 11769
Joined: Fri Mar 02, 2007 2:39 pm

Re: Fidelity cash position

Post by Spirit Rider » Sat Jul 21, 2018 8:21 pm

jjface wrote:
Sat Jul 21, 2018 6:55 pm
Spirit Rider wrote:
Sat Jul 21, 2018 3:58 pm
jjface wrote:
Sat Jul 21, 2018 3:50 pm
It is 10k in my se401k.
You did not click on the note4 "Initial Group Retirement Investment4" listing $10K.

"4. Initial minimum investments into group retirement accounts such as Fidelity Simplified Employee Pension-IRA, Keogh, Self-Employed 401(k), and Non-Fidelity Prototype Retirement accounts are $500 or higher. There is no minimum for additional investments in any type of Fidelity fund you already own."
No I actually tried to buy less than $10k and the system would not let me and said I needed a min of $10k. Somewhere there is an error.
Then I would call Fidelity and ask why explicitly documented limits for FZDXX are not followed.

mpsz
Posts: 372
Joined: Sat Jan 09, 2016 7:11 pm

Re: Fidelity cash position

Post by mpsz » Sat Jul 21, 2018 8:27 pm

You'll likely be downgraded to SPRXX (Fidelity Money Market fund) before the end of the year, if you weren't already.

FZDXX is a Premium Class fund -- which is like Admiral's shares at Vanguard. SPRXX appears to be the equivalent fund but with a higher ER and lower minimum.

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